SAMI Bonds - Beware of REOs that have already been sold
Happy St. Patrick’s Day. You may need a stiff drink after reading through today’s commentary. We have found a number of loans in SAMI shelf deals serviced by Nationstar that are listed as REO but have actually been sold by the Trust quite some time ago. The remittance report still shows the loans in the Trust, clearly listed as REO, and with no liquidation proceeds or losses passed through. We don’t know why this is so prevalent in SAMI shelf deals. We suspect the error is related to the BAC servicing transfer so other shelves may also be affected. This error is like the one we discovered with the Homeward Residential loans transferred to Ocwen. We will continue to look at other Nationstar deals for this issue and we will reach out to Nationstar to alert them to these sold loans.
If you own SAMI bond serviced by Nationstar or are looking to purchase any, let us perform a deep dive analysis for you so we can help you figure out exactly what collateral is backing them. We have updated valuations on most Nationstar serviced seriously delinquent loans. You need to know the truth.
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